Hedge the Inflation_by Robert Kiyozaki

The best investment to protect your portfolio from  inflation is precious metals. In particular, gold is  the best as far as stability and reliability. The reason  there is price inflation is generally because of an increase  in the supply of money. When a government’s central bank controls  the money supply, it can increase (or decrease) the supply of  money almost at will. When there are more dollars chasing the  same number of goods, prices naturally rise.

Precious metals like gold and silver do very well in an  inflationary period. This can be seen by looking at their  performance in the 1970’s. Just having the fear of inflation  or a weak dollar can drive the price of gold up dramatically.
This can protect your portfolio from inflation and even provide  some additional profit. Of course, gold and silver can also do  poorly in other economic environments like recession or prosperity.

Although you can buy precious metal mutual funds, these tend to  be much less stable than the actual metals. The swings can be  more dramatic and you are subjecting yourself to companies that  own and mine gold. Therefore, you have to worry about the  fundamentals of the companies that are in the mutual fund.

Prior to 1971, the dollar was a “derivative of gold”.

After 1971, the dollar became a derivative of debt, an IOU  known as U.S. bonds and T-bills, backed by the promise of the  U.S. taxpayer to pay the bills.

“Kiyosaki would rather hold gold and silver than cash.
Since Kiyosaki is able to print his own money, he does not need  to worry about saving money for a rainy day. With governments  printing so much money, I feel safer saving gold and silver.”

• Can the price of gold go lower? Absolutely. If it drops to  $500 an ounce, I’ll buy more. Let me tell you why….?

But first, to give you some background, Kiyosaki has been in  the gold market since 1971, when then-President Nixon took the  U.S. dollar off the gold standard. Back then, gold was pegged at  $35 an ounce, and ran to a high of $850 an ounce by January 1980. In the same period, silver hit approximately $40 an ounce.

Today, as I write, silver is around $23 an ounce. So I’ve seen  the price of precious metals go up and down.

Inflation or Recession?

In many ways, the conditions are far worse now than they were in  1996. Today, we have a slowing demand for the dollar. At the same  time, it appears that the Federal Reserve is increasing the supply  of dollars.

As you know, low demand and high supply means a drop in value of  anything, including the dollar. And in order to save the dollar’s  purchasing power, Ben Bernanke, the new Federal Reserve chairman,  may be forced to raise real interest rates. By “real,” I mean an  interest rate that’s higher than the rate of inflation.

(For example, if inflation is at 5 percent and interest rates are  at 5 percent, the real interest rate is 0 percent. So, in this  example, to increase demand for the dollar, the Federal Reserve  would have to raise interest rates above 5 percent, to, say, 8  percent. That would means investors would receive a net 3 percent
return on their money.)

So Bernanke has a tough choice to make: If he prints more money  to bolster the dollar, inflation increases and the dollar may  collapse. If he raises interest rates to slow inflation, the  economy may go into recession.

Good Money Before Bad

Which way will the new Fed chairman take us? Will he be  inflationary, which means printing more money, or deflationary,  which means raising interest rates and tightening the flow of  money? Does he save the dollar, or save the economy? Does he  increase the money supply, or increase demand for the dollar?

Kiyosaki’s strategy remains the same as it’s been for years:
He bet on real money, which is gold and silver. He also continues  to borrow funny money to buy real estate. Since oil and gas are  in high demand globally and appear to be going up in price, He  also invest in oil and gas production.

Again, Kiyosaki’s not really betting on these assets — He’s primarily betting against the dollar, and the leaders who  manage the U.S. economy.

Now you know why Kiyosaki’s buying more gold and silver every  time they drop in value in the current economic environment.  What smart investor wouldn’t gladly spend funny money to buy  real money?

Simplified  Tip :

Gold in inflation goes up

Gold in prosperity goes down

Funny Money : Money we use(USD/POUND/EURO)

Real Money : Gold/Silver

*Vale of money (for years) = Gold

How to Stay Positive Around Negative People

You know those people who seem to get off on being negative all the time. Sometimes it’s a coworker, a boss, or a family member. You can’t avoid them no matter how hard you try. What’s worse, their negativity is starting to affect you. When you’re surrounded by people like that, it’s hard to stay positive. Don’t let all that negative energy bring you down.

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Instructions

1. Avoid negative people outright if you can. Sometimes that might be impossible. That negative person can be your boss or coworker. It can be a family member. But, whenever possible, try to limit your contact with that person. The less negativity you experience, the better.

2.  Dwell on your accomplishments and not your failures. There will always be ups and downs in life, but by focusing on what you’ve accomplished, you’ll be able to maintain your positive spirit even when others try to bring you down with their negativity.

1. When confronted by negative people, smile. Experts say that smiling puts you in a good mood. Smiling is a great way to disarm negative energy and it just might also send out some positive vibes to the people you’re dealing with.

4.  A negative person might also be hostile. Try not to meet their hostility with your own. Try to see things from their point of view, even if you disagree with their outlook. Empathy can go a long way in defusing any negativity you might feel toward this person.

5.  Do things that make you feel good or relaxes you. Take a bubble bath, listen to soothing music, cook a delicious meal, or do anything else you can think of that will help you disarm any negativity you’ve dealt with that day.

6. Keep quotes or sayings with positive messages nearby. Tack them to your workspace or hang them in your kitchen. These messages can be gentle reminders that will help you maintain your positive outlook on life.

7.  If you are a religious person, turn to your spirituality to help you remain positive. Pray, attend services, or even seek spiritual counseling.

8.  Count your blessings. No matter how much negativity you’re surrounded by, whether in your own family or in your workplace, know that there are things you can appreciate and be positive about.

Financial Freedom – The untouched business journal

The Opportunity for Financial Freedom is Knocking There are many opportunities available for women today, but fear often gets in the way of moving forward. If you want to change your life for the better and start your journey to financial freedom, here are my five suggestions:

1. Decide What’s Important to You.
If you are dependent on your husband, family member or the government, then you are not in control of your financial future and well-being.
This step  is to decide if you want to be dependent…or independent.
If you choose to be dependent, then keep your fingers crossed and hope and pray that there will be something there for you down the road. If
you’ve chosen to put your entire financial life, and your future, into the hands of someone else, then I would say you are the ultimate gambler.
If you decide you do want to be financially- independent, then we are of like minds, and I encourage and support you in going for that
goal.

2. Get Educated About Money and Investing.

Where do you find this financial education? I have yet to find a traditional school that teaches you real-world money skills. There are many books, seminars, and online resources that offer a wealth of information on money and investing. I wrote the book Rich Woman because I wanted to share with women what I did to go from broke to financially-free. I used a step-by-step approach so it would be a path that other
women could follow.

My husband, Robert and I founded The Rich Dad Company because we are passionate about people being free—not just financially-free, but free to do what they truly want to do with their lives. The Rich Dad Company and the
educational tools and programs it offers are just some of many resources available to you. Who do you look to for your financial education? My rule in this regard is this: I only want to learn from people who are actively doing what I want to do. In real estate, business, oil, and gold and silver— my primary investments—I only work with people who are in the trenches in that
business every single day. Too many women blindly turn their money over to an advisor or financial planner with the expectation that that person can do a better job at managing and growing their money than they can.

A word of warning: A great many financial planners and advisors are not focused on educating you. They are salespeople with products and services to sell. When talking with a “financial expert,” ask yourself this question,
“Am I listening to a true educator or a salesperson?”

3. Create A Simple Plan.

Ask yourself: What is it that you want to achieve  financially? My plan was very simple. First and foremost, my financial plan is all about cash flow. As an investor, there are two things you can invest for: cash flow and capital gains. What’s the difference? Capital gains You buy a share of stock for $20. You later sell that share for $30. The profit you make is called capital gains. Or you buy a property for $50,000. In two years you sell that property for $75,000. Your profit or $25.0000 is capital gains.
Cash flow You buy a share of stock that pays a dividend. You hold that stock and every year you are paid a dividend. That dividend is called cash flow. Or
you buy a $50,000 property and decide to rent it. Every month you collect the rent, pay the mortgage and other expenses and—If you’ve
managed the property well—you’ll make a profit each month. That profit is cash flow.
My initial plan was only two sentences in length. I was going to purchase two rental units per year for ten years. At the end of ten years I would have twenty units and a healthy cash flow. The beauty of setting goals and moving forward on the path you’ve set is that once you’re in motion the journey becomes a bit easier. I bought my first unit…and then my second and third. Soon I realized that investing wasn’t as difficult as I thought it was. And
instead of needing ten years to reach my goal, I acquired my 20 units in eighteen months. Create a plan and keep it very simple.

4. Start Small.
With almost everything in life, there is a learning curve. Know that you will  make mistakes along the way, so start with small steps. My first real-estate-investment was a small, two-bedroom/one-bath house. I learned the fundamentals of owning and managing a rental property on that first house. I also made quite a few mistakes. Had I started with a 50- unit apartment building, my mistakes would have cost me much more.  One action you can take today is to go to a coin shop and buy a 1-ounce silver coin. Today, it will
cost you about US $30.00. You now own a commodity. The beauty of this small investment is that now you can go online every day and check if the price of silver is up or down. You’ll begin to spot articles and news clips on silver.Because you now own silver, both your interest and your education increase dramatically. Which brings me to step.

5. Put A Little Money Down.

At some point you must take action. You can
read all the books you want, attend seminars all day long, research opportunities up one side and down another, but if you don’t put up a little
money and get into the game you will never see a change in your financial life.
One simple action you can take is to research various stocks in companies you have an interest in and buy just two or three shares of one company. Your intelligence regarding the stock market will immediately increase if you
pay attention to what’s happening with your stock on a daily basis.
Change Your Mindset. There are a lot of factors to overcome in order to take
control of your financial well-being and to change your life for the better. Fear, negative people, hopelessness, and more can sabotage your efforts to
move forward. But know that you are not alone. Many women (including me) have gone from being homeless to being financially-free.
The key is to just start. Follow the five steps above, and you will be amazed at how quickly your financial knowledge increases and how rapidly your financial
life begins to transform. And once you’re in motion, your successes will breed more success.

10 Tips To Keep A Smile Always

Believe it or not, YOU are the one that decides whether or not to be happy. No matter how much we have to deal with in this life, it is up to us to determine our state of mind. Smiling is one of the best ways to keep a positive outlook in life. So I just wanted to share with you a few things that have
helped me turn that frown upside down.
1-Live a healthy lifestyle.
Nothing makes you smile lie feeling great, having lots of energy and knowing that you are treating your body with respect. So a great way to keep a smile on
your face is to exercise, eat right, drink lots of water and get plenty of sleep. I think this is a no brainer, but very important none the less.

2-Stay focused on the positive.
Another one that is very obvious and yet not so commonly implemented is to stay focused on the positive. No matter what the situation there is always
a silver lining. Find the good that is always present and keep it at the forefront of your mind.

3-Be prepared to take a step back.
When the going gets tough you need to be ready and able to step out of the situation and get some air. By remaining in a bad place you will be making it that much harder to see the way out. But by taking a step back, clearing your head and getting a fresh perspective, you will be much more capable of
maneuvering through any situation.

4-Spend time in nature.
I always find that nothing brightens my day like a good outing in the beautiful outdoors. Sunshine, fresh air, greens and blues, there’s nothing better.
Always make time to stop and smell the roses, literally.

5–Serve Others.

People usually shy away from the word serve as something they would ever do for another human being. It sounds so demeaning. But serving others and putting their needs above your own is a wonderful way to keep a healthy perspective and show someone you care. Keep a look out for opportunities to fill a need and help another human being. There is no greater antidote to an unfulfilled life than that of helping others.

6-Never lose the kid in you.

The kid in you is the source of your greatest imagination and the innocence that allows for a fresh perspective. When we ‘grow up’ we should never loose this child inside, but instead we should
embrace it as part of who we are and the great asset that it provides. There is no more genuine smile than that of a little child. That child is still inside you, you just have to let it out.

7–Always be flexible.

As important as it is to always have a plan, we need to remain flexible so that we can roll with the punches. Life is always going to throw us a curve now and again, but it is up to us to either let it get us
down or make the necessary changes to keep moving forward. So always be prepared to make a change and your smile will stay in tact.

8-Find healthy escapes.

Sometimes life is just too much to deal with. We need to a place where we can feel safe and are able to think clearly. Whether it’s a hobby, location or just an experience, find that place where you can get away from the trials of life so you can rest and recoup to go back out and hit things head on. Just make sure it is a ‘healthy’ escape. It can be tempting to escape
into those places that are hard to come back from. You will know it when you are in it. Just be clear with yourself that you will only stay if it is truly beneficial to you life.

9-Keep your priorities strait.

There is nothing more dangerous to you mental well being than misaligning the things that matter most. A common cause to an unnecessary frown is an over focused mind on that which is of little importance.

10-Appreciate the things you have.

Last but not least, never forget what you already  have and how blessed you are to have it. Things like your family, friends, pets, etc… Always appreciate these things and you will never have to live another smileless day.

Robert Kiyozaki Tips On Investment & Business

It is the direction of the cash flowing that determines if some thing is an asset or a liability at that moment. An asset puts money in to your pocket. A Liability takes money from your pocket.

Investment is not risky. It is the investor who is risky. Investing is not a race. You are not in competition with anybody else. All you need to do to make more money is to simply focus on becoming a better investor. There was risk in driving the car. But driving the car with hands off your steering wheel is really risky.
When it comes to investing, most people are driving the car hands off the steering wheel.

Three kinds of income:

Earned income       :    from a paycheck (highest taxed income)
Portfolio income  :    generally derived from stocks, bonds, mutual funds etc.
Passive income     :    income generally derived from real estate

Convert earned income into Passive income or portfolio income as efficiently as possible The true investor is prepared for whatever happens. A non-investor tries to predict what and when something will happen How do you prepare? You need to focus and keep in mind what other investors are already looking for. If you want to buy stocks, then attend classes on how to spot bargain stocks. The same is true for real estate. It all begins by training your brain what to look for and being prepared for the moment investment being presented to you. If you are prepared, which means you have education, experience and find a good deal, the money will find you or you will find the money. When
a person finds a good deal, the deal attracts the cash. If it’s a bad deal, it is hard to raise cash.

Reduce risk through financial literacy.

Learn to read financial statements. Most people cannot. Financial literacy is one of the important investor basics,
especially if you want to be a safe investor and inside investor and rich investor. Anyone who is not financially literate cannot see into an investment.
Just like the doctor uses an X-ray to see inside the skeletal system, a financial statement allows you to look into an investment and allows you to see the
truth, the facts, the fiction, the opportunities and the risk.  Reading a financial statement of a business or individual is like reading biography or autobiography. It provides a checklist of what is important. It tells what is functioning well. Remember investing is a plan. Finally the financial statement tells you if the investment is safe and will make you money. If you didn’t understand these factors, it would be risky. Remember that your expenses are some one else’s income. People who cannot control their cash flow
make the people who control the cash flow rich.

Investor controls. Everyone else gambles.
The rich are rich because they have more control over their money than poor and middle class. The moment you understand that the game of money is the game of control, you can focus on what is important in life – which is not making more money but gaining more financial control.

“The poor and middle class focus on earned income. The rich focus on portfolio income.”

To become an entrepreneur, never take a job for  money. Take a job only for the long- term skills you learn. Education in school is good. But education on the street is better.

The mission of the business is the reflection of the  spirit of the entrepreneur Business is a team sport. Investing is also a team sport A leaders job is to bring out the best in people. Not to be the best person. If you are the smartest person in your business team, your business is in trouble.
How do you gain leadership skills? Volunteer more! In most organization, it’s hard to find people who want to lead. Most people want to hide, so no one will
call them. With right mission, team and leader, money will follow.
Financial literacy allows you to read the numbers and the numbers will tell you the story of the business based on facts.

Cash flow is to the business what blood is to the human body. Nothing impacts business more dramatically than not being able to run payroll on
Friday. The better at communicating you are, the more people you communicate to and the better your cash flow will be.

To be good at communications, you first need to be good at human psychology. You never know what motivates people. Just because something makes you excited, doesn’t mean it makes others excited.

To be good at communication, you need to be good at pushing buttons. Many people are talking, but only few are listening. The world is filled fabulous products, but the money goes to the best communicators.

If want to be a leader, you need to be a speaker. The difference between sales and marketing If a business has strong convincing marketing, the sales come easily. Sales is done one-on-one. Marketing is sales done via a system. To be a
business owner on the B side, you need to learn how to sell through a system, which is called marketing and the 3 key ingredients to that system are
identifying a need, providing a solution and answering customers questions and what’s in it for me?

Human body is system of systems so was a business. A business is a complex system of inter-operating systems.

 

To become rich, you must teach yourself to think like
a rich person

Out of Box Leadership

Analysis of leaders in global business There are many interpretations in the meaning of leadership, in the old way it’s “getting others to follow’’, today there are different meanings which has no relation to command and control, but more on the concept of influencing others to work. Many leadership styles had been defined especially after the increasing attention to leaders and their
characteristics .

But that doesn’t mean that leaders should stick to one leadership style, the good leader can change his style to adapt with the current situation where he’s
required to lead effectively.

 

Ingvar Kamprad

Ivgvar Kamprad is one of the most successful leaders in the last century; he’s the founder of IKEA the biggest retailer of home furnishing. According to (Testervn, 2011) IKEA was founded as a pure family business, till now its value is based on the concept of family business.

One of the advantages of family business is that employees at all levels feel that they are part of the family, which help boosts their dedication and performance. Kamprad used to trait all employees in the company as they’re part of his family. Kamprad had never been a money wasteful person,
he never flied first class, he always choose to fly economic (Farfan, 2011). This is one of Kamprad philosophy that IKEA influenced by, according to
(Bernhardt, 2005) all managers and senior executives in IKEA fly economy. Kamprad had inspired the company by his own philosophy, that’s
what we can call leading by example. He said, “If there is such a thing as good leadership, it is to give a good example”. That could lead us to say that Ingvar kamprad is a transformational leader, according to Mullins
(2010,391) in addition to their charisma, transformational leaders has other components:
* Intellectual simulation: when leader push his followers to be creative and find new approaches of performance at work.
*Inspirational motivation: when the leader’s behavior provides meaning to the followers.

*Individual consideration: when the leader gives time to listen to his followers.

*Idealized influence: the leader’s charisma and the respect of his followers.

Kamprad had a special charisma helped him to approach his subordinates and influence them; his behavior at work built the cultural of the company.
According to Mullins, (2010) many research studies have met with little success trying to identify common personality of different leaders. However,
there are some common traits between different leaders, and so it is possible to identify some of the leadership qualities for successful leaders such as
initiative, self-confidence and intelligence.
Ingvar Kamprad had some of these qualities, according to (It started in a shade, 2004) making mistakes was acceptable for Kamprad, he said” only
those who are asleep make no mistakes” so he was a self-confidence leader. By the early time he was establishing his business, furniture dealers in Sweden started pushing suppliers not to give him raw materials, but Kamprad act fast by going to Poland to buy material from there to save his new business of getting meridian, which shows that he was initiative.

 

Steve Jobs

Steve Jobs, the founder of Apple. Jobs was a leader who values creativity, he has been represented by the Financial Times (cited in Mullins, 2010:412) as passionate, charming, inspirational, and abrasive leader. He set very high standards for him self and demand people around him to do the same, this led to disappointment, frustration, and anger for employees who have seen not with the same high standard. In an interview in 1995 Jobs made it clear that he used to get rid of people who couldn’t measure up his standards (cited in Mullins, 2010:412), that leads up to say that Steve Jobs had some of the autocratic style of leadership.

But the same time Jobs had influences the whole company by his style of leading; he gave example to his subordinates of being creative and innovative. He was involved in whatever it took to bring the company’ products into being, so he was the media face for launching the new products, his keynotes at
any conference was mote important that the corporate events. His influencing power had gone much far from his company to influence even the company’ customers (Mullins, 2010). Jobs was a transformational leader, his charisma that brought him respect of his followers, the fact that was the role model of all his subordinates, and his style of leading by example. As a future leader I need to learn more about each style of leadership to better understand where and
when to use each of it.

“The Richest Man In Babylon” – A must read book for financial success.

The Richest Man in Babylon is a book by George Samuel Clason which dispenses financial advice through a collection of parables set in ancient Babylon. Through their experiences in business and managing household finance, the characters in the parables learn simple lessons in financial wisdom.

21 Ways The Rich People Think Differently

1. Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

2. Average people think selfishness is a vice. Rich people think selfishness is a virtue.

3. Average people have a lottery mentality. Rich people have an action mentality.

4. Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

5. Average people long for the good old days. Rich people dream of the future.

6. Average people see money through the eyes of emotion. Rich people think about money logically.

7. Average people earn money doing things they don’t love. Rich people follow their passion.

8. Average people set low expectations so they’re never disappointed. Rich people are up for the challenge

9. Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

10. Average people believe you need money to make money. Rich people use other people’s money.

11. Average people believe the markets are driven by logic and strategy. Rich people know they’re driven by emotion and greed.

12. Average people live beyond their means. Rich people live below theirs.

13. Average people teach their children how to survive. Rich people teach their kids to get rich

14. Average people let money stress them out. Rich people find peace of mind in wealth.

15. Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

16. Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

17. Average people focus on saving. Rich people focus on earning.

 18. Average people play it safe with money. Rich people know when to take risks.

19. Average people love to be comfortable. Rich people find comfort in uncertainty.

20. Average people never make the connection between money and health. Rich people know money can save your life

21. Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

” Self improvement is a major factor to success.”

Self improvement lesson from Indian Entrepreneur –“Kochouseph Chittilappilly”

 

Many years ago, while V Guard was yet a small company and growing in size, I became keenly aware of many of my shortcomings. I knew that I needed to update myself in many areas. I did not have an MBA, nor was I adept at reading a balance sheet or P & L account. My knowledge and vocabulary of the English language was average and my public speaking skills were seriously lacking. Even at college, I was only a mediocre student. My only predominant trait was a technical aptitude.

I set about to remedy the situation immediately by enrolling in a series of workshops, training classes and programs. Once I even registered for accounting lessons, where I picked up the basics of reading a balance sheet, financial planning, profit and loss, taxation and more. It helped me steer my upcoming company to greater heights.

I once had to address a small gathering and I distinctly remember shaking with fear. That day I decided to join up for spoken english and public speaking classes. Today, I am able to address any large gatherings and very often, am invited as a guest speaker at many forums. On my return from these classes, I used to share my knowledge with my team members at V Guard, who followed in my path and have grown with the company to occupy very senior posts.

Entrepreneurial workshops helped hone my skills further. I determinedly sought out these courses and workshops, in pursuit of knowledge and excellence. In fact, from 1985 to the year 2000, it seemed even to my family, that attending training programs had become something like a craze or a fad for me.

Looking back, I realize that the training that I underwent has instilled in me self-confidence, self-awareness and emotional maturity. This has kept me in good stead not just in business but in my family and social life as well.

The first step toward self improvement is a self awareness of one’s shortcomings and a dire need to overcome them. One has to be constantly on the lookout for one’s weak areas, identify them and work determinedly toward overcoming them. Without this attitude one will remain in the same rut, running on the same track, facing the same problems and finally burn out and give up.

Self improvement is a major factor to success.

Test Your Entrepreneur Traits

“Do you have these 5-Traits”

1. Your level of satisfaction : This include your willingness and your dedication to become an entrepreneur.

2. Your personality  : Look at yourself, are you meeting certain ability that an entrepreneur need to survive,  like Risk Taking,                             Motivating others, Taking Responsibility, Quick Learning.

3. Planning  : In order to have a better life as being an entrepreneur you need to have a life or Routine, Understanding and Sacrifice. You should spent quality time with your Family, Friends as well as with the society. You will need to play several roles in each of these levels.

4. Finance  : Allocation of funds is very much necessary, in order to sustain you should have a good flow of money at the needy time, you should not be too flashy when you have and begging around when in hardship. Remember Money & Honey only stays with only those who Respect and protect it.

5. Implementation :  The is the final part at the same time its most important also, in order get things done you need to make action or take the first step.

**(If you think you have the answers for these, then the doors of entrepreneurship is widely opened for you to make changes.)

All the best.